Party Crashers

VCs Gatecrash Parties in The Middle East, HV Capital Raises €710 Million for Fund IX, and a Startup Looks to Make a Concrete Change.

Author

Adam from VC Brags
May 05, 2023

Welcome Shareholders,

In this daily edition of the Brags Newsletter, we’ll cover how VCs are crashing parties in the Middle East to raise funds amidst the slowdown. Also, HV Capital Looks to Boost German Startups with its largest-ever fundraise, and Partanna raises money seeking greener concrete.

So sit back, grab a snack, and enjoy!

Venture Today 👏

  • As the tech industry faces a downturn, relationships with Middle Eastern state-run funds, which have long invested in Silicon Valley, are becoming more crucial.

The Middle East has been attracting prominent investors like Chamath Palihapitiya and Tribe Capital's Arjun Sethi to the region over the last few months. However, Some newer venture capitalists have attempted to attend parties hosted by UAE and Saudi Arabian investors without invitations in a bid to raise money. According to sources at the venue, the investors, who value long-term relationships, were taken aback by the VCs' desperation, as they poorly perceived the uninvited party crashers.

While Saudi Arabia's ties with Andreessen Horowitz, Sequoia China, Founders Fund, and Tiger Global have made recent headlines, other regional players have maintained extensive, albeit quieter, exposure to venture capital. For instance, the Abu Dhabi Investment Authority (ADIA) has long supported tech and biotech-focused venture firms, including early investments in Founders Fund, Flagship Pioneering, 8VC, Thrive Capital, and Andreessen Horowitz.

Who’s Raising?

  • German Early and Growth Stage venture firm HV Capital has closed its largest ever fundraise with its ninth Fund raising €710 million from institutional investors across Europe and the US.

The new fund has already invested in four startups, including SPREAD, Polyteia, Ecoplanet, and Agreena. HV Capital has also reinforced its commitment to promoting ESG themes. The firm aims for 33% female representation in C-suite positions across its portfolio and plans to allocate 30% of funds to companies meeting the EIF's Climate Action & Environmental Sustainability criteria by the end of the fund's lifecycle.

HV Capital primarily invests in German-born companies that have expanded within the DACH market and often reached an international presence. The venture firm has backed various startups, including Flixbus, SumUp, StudiVZ, Seatwave, Cafe Press, Zalando, Wooga, HelloFresh, Depop, Delivery Hero, and Agreena. With €2.7 billion in Assets Under Management, the VC firm has invested in approximately 225 internet and tech companies, offering ticket sizes from €500,000 to €60 million, and maintains offices in Munich and Berlin.

Startup of the Day

  • Partanna a carbon-conscious concrete startup co-founded by ex-NBA star Rick Fox, has raised $12 million in pre-seed funding from Cherubic Ventures.

Cement is the second most widely-used substance globally, with its production responsible for 8% of total carbon emissions, surpassing aviation and ranking as the third-largest emitter behind the U.S. and China. Partanna aims to address this issue by revolutionizing the industry with its unique, eco-friendly concrete formulation. Partanna's innovative concrete relies on two key components: steel production waste called slag, and brine from desalination plants, which together replace Portland cement, the primary binding agent in conventional concrete.

Not only does Partanna's cement require minimal additional energy for preparation, but its unique curing process also actively removes CO2 from the atmosphere. Partanna sells carbon credits generated from its concrete production, with a single block yielding 14.3 kg of credits, and a 1,250-square-foot home removing nearly 130 metric tons of CO2 while avoiding an additional 54 metric tons.

Fresh Finds

  • Immigram offers a thorough, easy-to-follow guide for each stage of the visa application process, ensuring users stay on track and complete all necessary steps efficiently.

  • Immigram tailors its support to individual needs, taking into account specific circumstances and requirements that may not be immediately apparent, providing a personalized experience and increasing the likelihood of a successful application.

  • Immigram grants users access to a vast library of expert knowledge, insights, and resources, enabling applicants to make informed decisions, avoid common pitfalls, and navigate the complexities of the visa application process with confidence.

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